DODOMA, Tanzania – The Ministry of Finance has launched a comprehensive Medium-Term Revenue Strategy (MTRS) for the period 2025/26 to 2027/28, marking a significant step toward strengthening domestic revenue collection and reducing Tanzania’s dependence on external financing.
The strategy was officially unveiled by Dr. Natu El-maamry Mwamba, Permanent Secretary of the Ministry of Finance, who emphasized its critical role in enhancing revenue predictability, addressing tax evasion, and building public trust in the tax system.
“This strategy will enhance voluntary tax compliance, address tax evasion loopholes, reduce the budget deficit, and improve public trust and investment in the tax system,” Dr. Mwamba stated during the launch ceremony in Dodoma.
Three-Pronged Reform Approach
The MTRS outlines comprehensive reforms across three key areas designed to create a more efficient and equitable tax system:
- Policy Reforms: Development of a national tax policy to guide tax design and reform, alongside improvements to tax rates and reduction of unnecessary exemptions
- Administration Reforms: Modernization of electronic revenue collection systems, strengthening of taxpayer registration and tax return filing processes, and enhanced management of tax exemptions
- Legal Reforms: Regular updates to tax legislation to close evasion loopholes and ensure a fair and transparent system
Broad-Based Implementation Structure
The strategy will be implemented through a high-level committee structure comprising representatives from both government and private sector institutions. The main supervisory committee will be chaired by the Permanent Secretary of the Treasury, with membership including permanent secretaries from key ministries, the Governor of the Bank of Tanzania, the Commissioner General of the Tanzania Revenue Authority, and leaders from private sector organizations.
Dr. Jonson Nyella, Commissioner for Policy Management at the Ministry of Finance, highlighted that the strategy was developed through extensive consultations led by local experts with technical support from the International Monetary Fund.
“The strategy is critical to reducing the budget deficit and enabling financing of development projects through domestic resources, especially as Tanzania transitions from a low-income to a middle-income economy,” Dr. Nyella explained.
The MTRS aligns Tanzania with a growing trend of medium-term revenue planning in Africa, following similar initiatives in Kenya, Uganda, Malawi, Sierra Leone, Ghana, Morocco, and Rwanda.
